Price Fluctuations and Changes in People's Livelihood in China in the Past Six Years

Abstract

From 1978 to 1984, price and people's livelihood in China underwent marked changes. On the one hand, prices rose. On the other hand, people's livelihood improved. Prima facie, price rise and people's well-being are in conflict with each other. For a long time, we have publicized that to maintain stable price is a basic principle of the party. It guarantees stability in people's well-being. This line of reasoning has taken root in people's hearts. As a result, people are worried whenever prices rise. It is their conviction that price rise inevitably leads to lower living standards. Since the Third Plenum of the Party's Eleventh Central Committee, growth of national economy in general and agricultural development in particular has been accelerated through a series of systematic price readjustments, in an effort to rationalize the interrelationships in the national economy. In the past several years, prices of farm produce were raised by a considerable margin. This has enabled agriculture to develop rapidly....